Murphy Company has outstanding Bonds Payable, with a par value of $$120,000,$ and carrying value of

$$116,700.$ If the company purchases the bonds in the open market at a price of $97\mathrm{.}0$ and retires them, which of

the following is true?

A$)$ The company will recognize a gain of $$300.$

B$)$ The company will recognize a loss of $$3,300.$

C$)$ The company will recognize a gain of $$3,300.$

D$)$ The company will recognize a loss of $$300.$